Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
; o% a& ~3 s' p5 @companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
+ U# [) y: s' i. C7 V8 K% @/ [7 Zcrude prices improves. This implies also to good names such as Shell,
- b, [  }# E4 a5 u, ?3 @EXXON, BG, BP, Cheveron ....xyz.. oils
" R: C+ R' e( U& b. z$ v! Q
. t5 s: e* ?& A( h3 RRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
/ ^: ~$ J; Y, E* I: _& Q) W- f& i/ [. \$ MA year ago these things would have spiked the price of crude oil by at
3 {! ~+ ~) W+ ]2 W2 Uleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
5 R* r2 `4 u/ w* ?5 O$ Bof so much news. These reasons are:
7 Y" u* O8 Z) c* }6 a0 t! o+ X

! S  h: U& S8 h/ u) K- k' [3 m1. New oil has been found in Canada, Montana, North & South Dakota and
+ l' _. t5 d# p. ~in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
0 H0 X8 T6 O7 C% X3 u

/ a: i- A, i  I; m2. New natural gas has been found in Pennsylvania and West Virginia.
% [/ l; ~# }! }9 WThis is the largest find in North America.
! T" u  Y$ P( G" t- ^

3. New methods of injecting CO2 and surfactants into oil wells is
( _% T' X" k4 L, w; Z+ @being used to double their output.

1 c9 c9 p3 h' a7 Q0 E
4. Production of bio-fuels is beginning to reach critical mass. Bio
1 }' c2 W  d3 r) f. s* B8 q8 lfuel is being produced from many plants and algae. The production
# g/ G! N' b0 y+ X; K& P* mpotential per acre in some cases is astounding. Many countries are
$ e2 B; j, ?7 q+ M" E8 S" aracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
. o/ `5 k- ?6 g/ V0 `2 t

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
- D9 K" @# L) H8 Z6 }expected to be built in the future. Much of the energy they produce
$ B" k9 [* c9 x' V2 vwill replace oil.

9 l7 G: U  G9 u5 z
- x7 Y( R7 L7 [5 U. \5 q4 J2 \7. Every company in any form of transportaion business is replacing
3 v! X+ J& b/ i! a5 volder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
" L/ @* [3 I- E% C2 C. z$ Zare experiencing 20% to 25% better fuel econony with the new
equipment.
4 j/ x; T# y' t; r

* A. ^- p4 |% m9 C/ P2 DAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
' L0 j+ ^1 X6 t5 m
: P1 E4 P8 Y5 V9 {6 f  \) g5 o' ~
  R$ _+ i$ C. K, C/ Z/ R0 d& p" x8. Cities and counties throughout the US are selling the rights to
  d  l# a! E1 \" M3 R2 A& e- ~+ Tcapture methane gas from landfills. This is a huge source of gas
% Z: ?" \& g4 x# M5 yavailable at very little cost or risk. The gas is displacing crude
1 u. m+ k+ d) p) i3 B4 f2 M/ G, zoil.
) g9 v3 z" w$ C8 g8 _' K
3 C6 \* z0 K7 b) A) J* {
- ^" A# k2 T! q  E9. Coal is being transformed into a clean burning liquid fuel. The CO2
# U) C3 o) U9 W  o( Tproduced as a byproduct is sold to oil companies for injection into
oil wells.


3 u2 F; G5 o2 V; h( B( z* ^" [10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


. `8 {2 b  ]1 b0 ^0 a* [5 \% lEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
- f. K4 m' Z0 f& s$ C9 N* Cto control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
, C) X/ g- [' u' J( s$ eIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


' e/ ?2 v5 v) A3 ?! ^The above articles are from WSJ .............PUBLISHED ON 9TH JAN
. q9 Z" D0 \0 K2009 ... FYI-Only